CHARLESTON – West Virginia's two U.S. senators expressed their displeasure at another increase in inflation rates as one of them continues to revive parts of President Joe Biden's failed social spending bill in a way that can both fund Democratic wish list items and fight inflation.

 

According to the U.S. Bureau of Labor Statistics, the Consumer Price Index rose from 8.6% in May to 9.1% in June – the highest rate of inflation since November 1981. The 9.1% CPI was driven by increases in gasoline prices, rent and groceries. Prices between May and June rose by 1.3% compared to the 1% increase between April and May.

 

Speaking to reporters Wednesday afternoon during a virtual briefing from her Capitol Hill office, U.S. Sen. Shelley Moore Capito, R-W.Va., laid the blame at the feet of Biden, saying that the continued rise in inflation was hurting West Virginia families. Capito cited the $1.9 trillion American Rescue Plan Act pushed by Biden in the spring of 2021.

 

"Honestly, the administration has been very negligent, I think, in trying to help curb some of the high inflation," Capito said. "The joint tax analysis of the inflationary numbers says that the rescue plan that was passed wholly by one party in March of last year has contributed several points to the inflation factors ... It's flooding the market with money."

 

Capito said the CPI number exceeds an estimate of 8.8% that some economists were expecting for inflation rates in June. Capito also said that inflation rates were higher in rural parts of the nation, including Appalachia.

 

"I lived through the early '80s when the inflation figures were out of control and it is miserable," Capito said. "Your wages don't go far. You have to really watch your spending to make sure that you're able to keep it within the bounds of what you're earning. It's much, much more difficult to do the things that are necessary, like heating your homes, or cooling your homes, or buying your food."

 

U.S. Sen. Joe Manchin, D-W.Va., has been a frequent critic of inflation, citing that as a reason he could not support Biden's $1.75 trillion Build Back Better social spending plan last December. In a statement released Wednesday morning, Manchin said the Biden administration needs to put the brakes on actions that lead to higher inflation.

 

"Today's inflation data illustrates the pain families across the country are feeling as costs continue to rise at a historic rate. 9.1% is cause for serious concern," Manchin said. "For more than a year, leaders in Washington have ignored the serious concerns raised by myself and others about the rising cost of inflation."

 

Manchin has been in negotiations with Senate Majority Leader Chuck Schumer, D-N.Y., for a very limited package of social spending programs, including prescription drug pricing reform, an extension of Affordable Care Act subsidies, funding for new investments in energy production, and corporate tax rate increases. Manchin believes the deal he is negotiating will help reduce inflation.

 

"While Washington seems to now understand this reality, it is time for us to work together to get unnecessary spending under control, produce more energy at home and take more active and serious steps to address this record inflation that now poses a clear and present danger to our economy," Manchin said. "No matter what spending aspirations some in Congress may have, it is clear to anyone who visits a grocery store or a gas station that we cannot add any more fuel to this inflation fire."

 

Speaking to Politico later Wednesday, Manchin said he would scrub the deal being worked on to ensure that every item in it is paid for and doesn't add to inflation issues. Senate Democratic leadership hopes to have a bill ready in August using the budget reconciliation process to get around needing 60 votes to avoid a filibuster by Republicans.

 

"I am very, very cautious, and I am going to make sure I have every input on scrubbing everything humanly possible that could be considered inflammatory," Manchin said.

Capito was more skeptical about the proposed plan as is currently known as the broad details continually change, calling it a "reckless tax-and-spending spree."

 

"Now, we have here on Capitol Hill the Democrats and their leadership talking again about spending another trillion dollars and putting more money in when we know what kind of effect that's going to have," Capito said.

 

"I think it's very clear — very, very clear — that the flood of money and the overspending, and particularly the rescue plan, damaged our recovery out of the pandemic and has led us to this inflation along with other factors," Capito continued. "I can't for the life of me see how they can go back and legitimately say we're going to be spending another trillion dollars ... I don't see how you can talk about raising taxes on small businesses, which is what would fund some of these ideas."